8ABReduction of productivity benefit

8AB Reduction of productivity benefit

(1) Where a member who has been credited with productivity benefit in accordance with subclause 8AA(2) becomes a member to whom subclause 8AA(3) applies, the amount of productivity benefit credited to that member is, by force of this subclause, reduced by the amount by which the last‑mentioned benefit exceeds the benefit which would have accrued if the member had, at all relevant times, been a member to whom subclause 8AA(3) had applied. (2) Where a member who has been credited with productivity benefit in accordance with subclause 8AA(2), not being a member to whom subclause (1) has applied, retires and: (a) on his or her retirement, he or she is entitled to retirement pay or invalidity pay under the DFRDB Act; or (b) on or after his or her retirement, he or she is or becomes: (i) a person in respect of whom a transfer value is payable under section 77 of that Act; or (ii) a person in respect of whom deferred benefits are applicable under section 78 of that Act; the amount of productivity benefit credited to that person is, by force of this subclause, reduced by the amount by which that benefit exceeds the productivity benefit which would have accrued if the person had, at all relevant times, been a member to whom subclause 8AA(3) applied. (3) Where: (a) subclause (2) has effect in relation to a person because the person was a person to whom deferred benefits were applicable under section 78 of the DFRDB Act; and (b) under subsection 78(6) of that Act those benefits subsequently ceased to be applicable in respect of that person; the person is credited with an amount calculated in accordance with the formula: Image unavailable in extracted text where:

Notional amount means the amount that would have been paid to or in respect of the member in accordance with clause 6 on his or her retirement from the Defence Force if he or she had not been a member referred to in subclause (2); and

Amount paid means the amount that was paid to or in relation to the member in accordance with clause 6 upon the member’s retirement from the Defence Force; and

Interest means the interest which would have accrued under this Determination in respect of the amount (in this subclause called the ‘additional credit’) by which the notional amount exceeds the amount paid if:

(a) the member had not retired from the Defence Force and had remained a member until the amount payable under this subclause is paid; and
(b) interest had been credited under this Determination in respect of the additional credit.

(3A) Where a member who has been credited with productivity benefit in accordance with subclause 8AA(2), not being a member to whom subclause (1) has applied, retires and becomes entitled to invalidity benefit under subsection 32(2) of the DFRDB Act, the amount of productivity benefit credited to that member is, by force of this subclause, reduced by the amount by which the sum of: (a) that invalidity benefit; and (b) that productivity benefit; exceeds the greater of: (c) an amount equal to the sum of: (i) the member’s refunded contributions; and (ii) the member’s lump sum payment; and (iii) the member’s notional productivity benefit; or (d) an amount equal to the sum of: (i) the member’s refunded contributions; and (ii) the member’s additional productivity benefit; and (iii) the member’s notional productivity benefit. (4) Where a member who has been credited with productivity benefit in accordance with subclause 8AA(2), not being a member to whom subclause (1) has applied, dies before his or her retirement and a pension becomes payable under Part VI of the DFRDB Act in respect of the deceased member, the amount of productivity benefit credited to that person is, by force of this subclause, reduced by the amount by which that benefit exceeds the productivity benefit which would have accrued if the person had, at all relevant times, been a member to whom subclause 8AA(3) applied. (5) Where a member who has been credited with productivity benefit in accordance with subclause 8AA(2), not being a person to whom subclause (1) has applied, dies before his or her retirement and a lump sum becomes payable under subsection 48(1) or 48A(1) of the DFRDB Act in respect of the deceased person, the amount of productivity benefit credited to that person is, by force of this clause, reduced by the amount by which the sum of: (a) that lump sum; and (b) that productivity benefit; exceeds the greater of: (c) an amount equal to the sum of: (i) the amount payable in respect of the deceased member under subsection 48(1) or 48A(1) of the DFRDB Act; and (ii) the deceased members notional productivity benefit; or (d) an amount equal to the sum of: (i) two thirds of the amount referred to in paragraph (a); and (ii) the deceased member’s additional productivity benefit; and (iii) the deceased member’s notional productivity benefit. (6) In this clause: